Question

What is the income statement in accounting? Please show the basic structure of Income statement.

Answer 1

Income statement in accounting will show the income and expenses of any firm or organization. it may be monthly, weekly, quarterly or annually and sometimes it may be prepared on the basis of requirement.

Income statement will prepare only for particular period only, no balance of last period is carry forwarded and shown in income statement in next period.

Income statement will show our purchases , sales , opening stock, Closing stock and all expenses of the organization.

Format of income statement is as below,

INCOME STATEMENT
Particulars	Amount	Amount
Sales Revenue	XXXX
Less: Sales return and allowance	XXXX
Net Sales		XXXX
Less : Expenses
Cost of Goods Sold		XXXX
Gross Profit		XXXX
Selling expenses	XXXX
Administrative Expenses	XXXX
Bad Debt Expenses	XXXX
Total Expenses		XXXX
Net Income		XXXX
Less: Income tax Expenses		XXXX